H.R. 1756

National Oilheat Research Alliance Reauthorization Act of 2011

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I

112th CONGRESS

1st Session

H. R. 1756

IN THE HOUSE OF REPRESENTATIVES

May 5, 2011

Mr. Bass of New Hampshire (for himself, Mr. Welch, Mr. Pallone, and Mr. Lance) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To reauthorize the National Oilheat Research Alliance, and for other purposes.

1.

Short title

This Act may be cited as the National Oilheat Research Alliance Reauthorization Act of 2011.

2.

Amendments

(a)

Findings

Section 702 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended by striking oilheat each place it appears and inserting oilheat fuel.

(b)

Definitions

Section 703 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended—

(1)

by striking oilheat each place it appears (other than paragraph (10)) and inserting oilheat fuel;

(2)

in paragraph (2), by inserting , including information on energy conservation strategies, safety, new technologies that reduce consumption or improve safety, and State, local, or Federal programs designed to assist oilheat fuel consumers after hot water heating fuels;

(3)

by striking paragraph (7) and inserting the following:

(7)

Oilheat fuel

The term oilheat fuel means fuel that—

(A)

is—

(i)

No. 1 distillate;

(ii)

No. 2 dyed distillate;

(iii)

a liquid blended with No. 1 distillate or No. 2 dyed distillate; or

(iv)

a biobased liquid; and

(B)

is used as a fuel for nonindustrial commercial or residential space or hot water heating.

;

(4)

in the heading for paragraph (8), by striking Oilheat and inserting Oilheat fuel;

(5)

in paragraph (14)—

(A)

by striking No. 1 distillate or No. 2 dyed distillate each place it appears and inserting oilheat fuel; and

(B)

in subparagraph (B), by striking sells the distillate and inserting sells the oilheat fuel; and

(6)

by redesignating paragraphs (14) and (15) as paragraphs (15) and (14), respectively, and moving paragraph (15) (as so redesignated) to appear after paragraph (14).

(c)

Referenda

Section 704 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended—

(1)

by striking oilheat each place it appears and inserting oilheat fuel;

(2)

by striking No. 1 distillate and No. 2 dyed distillate each place it appears in subsections (a) and (c) and inserting oilheat fuel;

(3)

in subsection (a)—

(A)

in paragraph (5)(B), by striking Except as provided in subsection (b), the and inserting The; and

(B)

in paragraph (6), by striking , No. 1 distillate, or No. 2 dyed distillate;

(4)

in subsection (b), by striking under and inserting consistent with; and

(5)

in the heading for subsection (d), by striking Oilheat and inserting Oilheat Fuel.

(d)

Membership

Section 705 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended—

(1)

by striking oilheat each place it appears and inserting oilheat fuel;

(2)

in subsection (b)(2), by striking No. 1 distillate and No. 2 dyed distillate and inserting oilheat fuel; and

(3)

by striking subsection (c) and inserting the following:

(c)

Number of members

(1)

In general

The membership of the Alliance shall be as follows:

(A)

One member representing each State participating in the Alliance.

(B)

Five representatives of retail marketers, of whom 1 shall be selected by each of the qualified State associations of the 5 States with the highest volume of annual oilheat fuel sales.

(C)

Five additional representatives of retail marketers.

(D)

Twenty-one representatives of wholesale distributors.

(E)

Six public members, who shall be representatives of significant users of oilheat fuel, the oilheat fuel research community, State energy officials, or other groups with expertise in oilheat fuel.

(2)

Full-time owners or employees

(A)

In general

Except as provided in subparagraph (B), other than the public members of the Alliance, Alliance members shall be full-time managerial owners or employees of members of the oilheat fuel industry.

(B)

Employees

Members described in subparagraphs (B), (C), and (D) of paragraph (1) may be employees of the qualified industry organization or an industry trade association.

.

(e)

Functions

Section 706 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended—

(1)

by striking oilheat each place it appears and inserting oilheat fuel;

(2)

in subsection (a)(1)(A)(ii), by inserting , including providing the cost of installing appliances in low-income households after utilization equipment;

(3)

in subsection (a), by adding at the end the following new paragraph:

(4)

Training and research and development as a priority

Of the assessments collected by the Association pursuant to section 707, not less than 40 percent shall be devoted to a category of outlays comprised of training projects and research, development, and demonstration projects, with a priority on research, development, and demonstration projects that would enhance efficiency through the use of biobased liquids. Training and research under this paragraph shall include the development and demonstration of advanced biofuels.

;

(4)

in the heading for subsection (c)(2), by striking oilheat and inserting oilheat fuel;

(5)

by redesignating paragraph (4) of subsection (e) as paragraph (5);

(6)

by inserting after subsection (e)(3) the following new paragraph:

(4)

Response to recommendations

If the Secretary makes recommendations under paragraph (3), the Alliance shall, before implementation of the budget with respect to which the recommendations pertain, provide to the Secretary and the Congress a report describing the Alliance’s response to the recommendations.

;

(7)

by amending subsection (f)(2)(C) to read as follows:

(C)

Procedures to ensure compliance

The Alliance shall contract with a qualified accounting firm to develop procedures to ensure compliance with the Act. The Alliance shall contract on a yearly basis with a qualified accounting firm to evaluate whether such procedures have been followed. Such evaluation shall be included in the annual report required under subsection (h) and shall be furnished to Congress and to the Secretary of Energy.

; and

(8)

in subsection (h)—

(A)

by striking and at the end of paragraph (1);

(B)

by striking the period at the end of paragraph (2) and inserting ; and; and

(C)

by adding at the end the following new paragraph:

(3)

provides a detailed account of the amounts spent by each qualified State association that received funds pursuant to subsection (e) on training, research, development, and demonstration, safety, and consumer education.

.

(f)

Assessments

Section 707 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended—

(1)

by striking oilheat each place it appears and inserting oilheat fuel;

(2)

by striking subsection (a) and inserting the following:

(a)

Rate

(1)

In general

The assessment rate for calendar years 2012 and 2013 shall be equal to 2/10 of 1 cent per gallon of oilheat fuel.

(2)

Subsequent assessments

Subject to paragraphs (3) and (4), beginning with calendar year 2014, the annual assessment rate shall be sufficient to cover the costs of the plans and programs developed by the Alliance.

(3)

Limitations on increase

(A)

In general

The annual assessment shall not exceed ½ of 1 cent per gallon of oilheat fuel.

(B)

Limitation

The annual assessment may not change by more than 1/10 of 1 cent per gallon of oilheat fuel in any 12 month-period.

(C)

Approval

No increase in the assessment may occur unless—

(i)

the increase is approved by 3/4 of the members voting at a regularly scheduled meeting of the Alliance; and

(ii)

at least 90 days before the date of the meeting of the Alliance, the Alliance provides notice of the proposed increase to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives.

(D)

Notice

The Alliance shall provide notice of a change in assessment at least 90 days before the date on which the change is to take effect.

;

(3)

in subsections (b)(1) and (c), by striking No. 1 distillate and No. 2 dyed distillate each place it appears and inserting oilheat fuel;

(4)

in subsection (b)—

(A)

by striking No. 1 distillate or No. 2 dyed distillate each place it appears and inserting oilheat fuel; and

(B)

in paragraphs (2)(B) and (5)(B), by striking fuel each place it appears and inserting oilheat fuel;

(5)

in the heading for subsection (c), by striking Oilheat and inserting Oilheat Fuel; and

(6)

in subsection (e)(2)(A)(ii)(III), by striking directly benefit and all that follows through industry and inserting consumers of oilheat fuel.

(g)

Market survey and consumer protection

Section 708 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is repealed.

(h)

Lobbying Prohibition

Section 710 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended to read as follows:

710.

Lobbying prohibition

No funds derived from assessments under section 707 collected by the Alliance shall be used directly or indirectly to influence Federal, State, or local legislation or elections, or the manner of execution of legislation, except that the Alliance may use such funds to provide information requested by a Member of Congress, or an official of any Federal, State, or local agency, in the course of the official business of such Member or official.

.

(i)

Violations

Section 712(a) of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended—

(1)

in paragraph (2), by striking oilheat and inserting oilheat fuel; and

(2)

by striking paragraph (3) and inserting the following:

(3)

a direct reference to a competing product.

.

(j)

Extension

Section 713 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended by striking 9 years after the date on which the Alliance is established and inserting 7 years after the date of enactment of the National Oilheat Research Alliance Reauthorization Act of 2011.

3.

Renewable fuel content

(a)

Renewable fuel research

Section 706(a)(3)(B)(i)(I) of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended by inserting , including research to develop renewable fuels and to examine the compatibility of different renewable fuels with oilheat fuel utilization equipment, with priority given to research on the development and use of advanced biofuels after utilization equipment.

(b)

Report

The National Oilheat Research Alliance shall prepare a report no later than one year after date of enactment of this Act on the use of biofuels in oilheat fuel utilization equipment. This report shall provide information on the environmental benefits, economic benefits, and any technical limitations on the use of biofuels in oilheat fuel utilization equipment. It shall also describe market acceptance of the fuel, and information on State and local governments that are encouraging the use of these fuels in oilheat fuel utilization equipment. The Alliance shall provide this report to the Governor of each State, and other appropriate State leaders, where the Alliance is operating. Additionally, a copy of this report will be furnished to the Administrator of the Environmental Protection Agency and to the Congress.

(c)

Consumer education materials

The Alliance shall develop consumer education materials in conjunction with an institution or organization engaged in biofuels research describing the benefits of using biofuels as or in oilheat fuel based on the technical information developed pursuant to subsection (b), as well as other information generally available.